India took a step a closer to instant settlements in share trading on Friday, with the stock market regulator proposing it as an option in addition to the existing Transaction+1 (T+1) settlement cycle.
Market participants said retail investors making delivery-based trades stand to benefit if the proposal in the regulator's consultation paper makes it to the final stage, since they will receive proceeds instantaneously. This would be especially beneficial for investors selling shares since they will immediately receive money, which can be reinvested elsewhere. Buyers too will receive shares immediately, allowing them to pledge the shares and raise capital for further trading.
Currently, all share transactions in stock markets are settled on a T+1 basis; shares are credited to the buyers' demat account and money credited to the seller's bank account a day after the transaction.
Diese Geschichte stammt aus der December 23, 2023-Ausgabe von Mint Mumbai.
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Diese Geschichte stammt aus der December 23, 2023-Ausgabe von Mint Mumbai.
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